Turkey’s purchase of almost 500,000 tons of Ukrainian wheat will support the Ukrainian market

Active tender purchases of wheat by the main world importers supported the quotations, which stopped the fall and even rose by 0.5-2.5% yesterday.

The State Turkish Agency TMO purchased 455,000 tons of mainly Ukrainian food wheat at an international tender at a price of $329.9-344/t CIF with delivery in December-February. The purchase of Ukrainian wheat, not Russian, which is traditionally bought by Turkish importers, will significantly support prices in Ukraine in the near future.

This week, export demand prices for wheat in the ports of Ukraine remained at the level of $195-210/t or UAH 8,000-8,300/t. But purchases are proceeding very discreetly due to delays in the arrival of ships to ports as a result of sabotage of the inspection by Russian inspectors at the JCC.

This week, Pakistan purchased 120-130 thousand tons of food wheat at a tender, choosing the cheapest lots offered by European and Russian companies. And the offer prices were $372-397.8/t C&F.

According to the European Commission, in 2022/23 FY as of November 27, EU countries exported 13.89 million tons of soft wheat (which is 3% higher than last year’s figure – 13.45 million tons), in particular:

• France – 5.65 million tons,
• Romania – 1.81 million tons,
• Germany – 1.57 million tons,
• Latvia – 1.19 million tons,
• Poland – 1.11 million tons.

The main buyers of European wheat were Algeria (1.97 million tons), Morocco (1.85 million tons) and Egypt (1.49 million tons).

After a week’s decline, wheat quotes rose slightly yesterday:

• by 1.8% or $5.05/t to $283.5/t – December futures for soft winter SRW wheat in Chicago,
• by 1.7% or $6.06/t to $351.5/t – December HRW hard winter wheat futures in Kansas City,
• by 0.4% or $4.5/t to $335.6/t – December futures for HRS durum wheat in Minneapolis,
• by 0.5% or $1.5/t to $318.5/t – January futures for Black Sea wheat in Chicago,
• by 0.1% or 0.5 €/t to 326.5 €/t or $340.5/t – December wheat futures on Paris Euronext.

According to AgMin & Farmers’ Welfare estimates, 15.3 million hectares of wheat have been sown in India, which is 11% more than last year’s figure, so if the weather is favorable, the country will harvest a record 110 million tons of wheat in 2023.

According to S&P Global Commodity Insights, as of November 29, Australian premium white wheat and standard white wheat fell to $357/t and $315/t FOB Kwinana on the back of lower global prices, an acceleration in harvest and export rates, and decrease in precipitation intensity.

Tags: Ukraine, Russia, tender, Turkey, wheat